Increase company share capital

How to Increase a Company’s Share Capital?

UK limited companies can increase share capital at any time during the life of the company. The changes can be filed online or by postal application with Companies House.

Form SH01 is used to inform Companies House that the share capital of a company has been increased. This form can be filed in paper version Form SH01 or online using Companies House web filing service. The online version is arguably the easiest of the two options. Below we have provided an example of a company with standard ‘ordinary’ shares increasing its share capital.

Share Capital Increase

£6000
  • Full company documents
increase share capital

Increasing Share Capital for Ordinary Shares

For this example we are using a company that has an issued share capital of £100 (100 x £1 shares already in existence). The directors want to issue a further 900 shares to make the new total issued shares £1000 (1000 x £1 shares).

Completing form SH01 online
When filing the SH01 form online there are two steps to follow.

Step 1. Statement of Capital

Increase the statement of capital to show the new total shareholdings for the company. Using the example above you need to show the following information-

Currency: GBP
Class of share: Ordinary or Ordinary Class A (check what your shares are)
Number of shares: 1000
Amount paid up on each share: 1
Amount unpaid on each share: 0
(You will either declare that the shares are PAID on UNPAID)
Aggregate nominal value: 1000.00 (this is the new total nominal value of shares in issue)

In the box provided you enter the ‘rights’ attached to each share. This may be voting rights, dividend rights, participation etc.
(This statement can vary and depends on your existing shares or the rights attached to new shares. Check with your company formation agent or accountant if you are unsure of the rights attached to the shares.)

Step 2. Allotment of Shares

Add the allotment of new shares being issued. Using the example above you need to show the following information-

Currency: GBP
Class of share: Ordinary or Ordinary Class A (check what your shares are)
Number of shares allotted: 900
Nominal value of each share: 1
Amount paid (including share premium) 1
Amount unpaid (including share premium) 0
(You will either declare that the shares are PAID on UNPAID)
Details of non-cash consideration box (optional)
(This box is only used to declare a consideration that has been given for the shares that is not cash)

Dates allotted
Allotment period from:
Allotment period to (optional)

(this is the date the shares were issued and if applicable the date the allotment ceased. It is likely you will not enter a ‘to’ date as the shares will stay ‘in issue’ for the foreseeable future).

In Summary. You need to amend the statement of capital first to show the new share structure. Once done you complete the share allotment for the additional shares being issued. When this has been done, you can record the actions in company minutes, create and issue new share certificates.

Our Comments

Under The Companies Act 2006 there is no longer an authorised share capital consisting of shares that have not been issued. Companies now only have issued capital.

Get Help Increasing Your Companies Share Capital!

Completing form SH01 can be an arduous task for some companies. We file hundreds of forms every month with Companies House for our customers. If you need assistance completing any change to your company’s share capital, we offer a low cost service and complete the forms for you online.

We are happy to assist you with your documents!

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